/raid1/www/Hosts/bankrupt/TCRLA_Public/220913.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Tuesday, September 13, 2022, Vol. 23, No. 177

                           Headlines



A R G E N T I N A

ARGENTINA: Inflation Rate Expected to Hit 100% by End of 2022
BUENOS AIRES: S&P Affirms 'CCC+' Long-Term Issuer Credit Ratings


B R A Z I L

BRAZIL: Sao Paulo Gets $164M IDB Loan for Digital Transformation


C H I L E

LATAM AIRLINES: Revised Business Plan Sees Bullish Future


J A M A I C A

[*] MAILPAC: Records Less Profit in June Quarter


P E R U

PETROLEOS DEL PERU: Fitch Cuts LT IDRs to BB+, Keeps Watch Neg.


P U E R T O   R I C O

SAN JORGE CHILDREN'S HOSPITAL: Files for Chapter 11 Bankruptcy


V I R G I N   I S L A N D S

PACIFIC RIM: Chapter 15 Case Summary
SELUNE LTD: Chapter 15 Case Summary

                           - - - - -


=================
A R G E N T I N A
=================

ARGENTINA: Inflation Rate Expected to Hit 100% by End of 2022
-------------------------------------------------------------
Buenos Aires Times reports that inflation in Argentina is expected
to reach 99.6 percent by the end of the year and remain above 100
percent in the first half of next year, according to Buenos
Aires-based consultancy firm EcoGo.

Argentines face the highest annual inflation in three decades as
global energy prices, economic policies and a falling currency have
accelerated price rises this year, according to Buenos Aires Times.
Part of the recent pressure on prices stems from widespread
concern about a possible currency devaluation, reviving fears of
past episodes in a crisis-prone economy, the report relays.

Economy Minister Sergio Massa is in Washington to assure US
officials and multilateral institutions that he intends to
implement Argentina's US$44.5-billion agreement with the
International Monetary Fund, which is seen by investors as a key
anchor to finally stabilize inflation, the report discloses.

Massa has already pledged to end money printing for public spending
this year and reduce the country's fiscal deficit as other measures
to cool prices, the report says.

EcoGo, run by economist Marina Dal Poggetto, forecasts a very high
August monthly inflation rate of 6.9 percent, although that would
be slightly lower than the 7.4 percent recorded in July, which came
amid a currency slump, the report relays.

Rising regulated prices for health, education and transport caused
the high August projection, according to the EcoGo report, which
examines high-frequency data, the report notes.

The INDEC national statistics bureau is due to publish official
inflation data for August on September 14, the report adds.

                     About Argentina

Argentina is a country located mostly in the southern half of
South America.  Its capital is Buenos Aires. Alberto Angel
Fernandez is the current president of Argentina after winning  
the October 2019 general election. He succeeded Mauricio  
Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,  
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Last March 25, 2022, Argentina finalized agreement with the IMF
for a new USD44 billion Extended Funding Facility (EFF) intended
to fund USD40 billion in looming repayments of the defunct
Stand-By Arrangement (SBA), with an extra USD4 billion in up-front
net financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris  Club debt.

As reported by The Troubled Company Reporter - Latin America on
Aug. 12, 2022, S&P Global Ratings affirmed its foreign and
local-currency sovereign credit ratings of 'CCC+/C' on the
Republic of Argentina. The outlook remains stable. S&P also
affirmed its national scale 'raBBB-' rating and its 'CCC+' transfer
and convertibility assessment. S&P said the stable outlook reflects
the challenges in managing pronounced economic imbalances ahead of
the 2023 national elections given disagreement on policy within the
government coalition and financing pressures in the local market.

Last April 14, 2022, Fitch Ratings affirmed Argentina's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC'.
Fitch said Argentina's 'CCC' ratings reflect weak external
liquidity and pronounced macroeconomic imbalances that undermine
debt repayment capacity, and uncertainty regarding how much
progress can be made on these issues under a new IMF program.
On July 19, 2022, Fitch Ratings placed Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) and Long-Term Local
Currency IDR Under Criteria Observation (UCO) following the
conversion of the agency's Exposure Draft: Sovereign Rating
Criteria to final criteria. The UCO assignment indicates that
ratings may change as a direct result of the final criteria. It
does not indicate a change in the underlying credit profile, nor
does it affect existing Rating Outlooks.

Moody's credit rating for Argentina was last set at Ca on
Sept. 28, 2020.

DBRS has also confirmed Argentina's Long-Term Foreign Currency
Issuer Rating at CCC and Long-Term Local Currency Issuer Rating at
CCC (high) on July 21, 2022.


BUENOS AIRES: S&P Affirms 'CCC+' Long-Term Issuer Credit Ratings
----------------------------------------------------------------
On Sept. 9, 2022, S&P Global Ratings affirmed its 'CCC+' foreign
and local currency long-term issuer credit ratings on the city of
Buenos Aires. The outlook remains stable.

Outlook

S&P said, "The stable outlook on the city of Buenos Aires reflects
our expectation of strong tax revenue and maintenance of
expenditure controls to sustain stable and strong operating
surpluses, as well as limited deficits after capital expenditure
(capex). Debt service will be low for the next two years and mostly
denominated in pesos, which we expect the city to finance through
its liquidity and issuances in the domestic debt market, thanks to
satisfactory access."

Downside scenario

S&P said, "We could downgrade the city of Buenos Aires in the next
12 months if we revised downward our T&C assessment for Argentina,
as a result of tighter foreign exchange restrictions that would
further limit the city's (and the provinces') capacity to meet
foreign-currency financial obligations. We could also lower the
long-term rating on the city in the next 12 months if persistently
high inflation or/and currently unexpected sharp depreciation of
the Argentine peso, structurally worsen the city's financial
profile."

Upside scenario

S&P said, "While the city's intrinsic creditworthiness is stronger
than the current 'CCC+' ratings, we cap our ratings on the city to
those on Argentina (CCC+/Stable/C) and the 'CCC+' T&C assessment.
As a result, we could only upgrade the city if we upgrade Argentina
and upwardly revise the T&C assessment."

Rationale

The city's stand-alone credit profile (SACP) of 'b+' indicates its
intrinsic stronger creditworthiness than the rest of the local and
regional governments (LRGs) in Argentina. The SACP captures the
city's socio-economic conditions that are better than those of
peers, as well as the city's adequate financial management, which
has led to generally balanced budgetary performance and declining
debt and debt service levels. In the next 24 months, the city's
debt service will be low and mostly denominated in local currency,
which Buenos Aires will finance through its adequate liquidity and
issuances in the domestic market. However, external markets remain
closed to the city, despite its strong debt service track record.
Finally, in S&P's view, the Argentine institutional framework
assessment, Argentina's T&C assessment, and the ratings on the
sovereign cap its ratings on the city to 'CCC+'.

S&P expects the city to maintain financial resiliency in the next
two years.

S&P said, "We believe Buenos Aires will continue to post strong
fiscal results thanks to its wealthier economy than those of
Argentina's provinces, a transitory revenue windfall caused by
inflation, as well as the city's efforts to contain operating
expenditures. We expect Buenos Aires to post operating surpluses of
about 11% of operating revenues and minor deficits after capex over
2022-2024. As of June 2022, operating surplus was 26.3% of
operating revenues (up from 8.3% in June 2021) and surplus after
capex at 19.2% of total revenues.

"Our base-case scenario assumes that tax revenue and transfers will
continue to rise in line with nominal GDP growth. We continue to
assume that extraordinary measures, introduced in 2021 to partly
compensate for a reduction of "coparticipation" transfers from the
national government, will remain in place over the forecast period.
These include a tax on credit card transactions and no tax
exceptions to financial gains from LELIQS (a Central Bank of
Argentina debt instrument). The city filed a legal challenge
against the national government for cutting funds without enough
compensation to finance its operating expenditures. The process is
on a final stage at the supreme court, but the timing and outcome
of the ruling is uncertain.

"Following the city's 60% public-sector salary increase in 2022, we
expect demands to continue for further raises, given that inflation
continues to exceed official estimates. Our base-case scenario also
assumes capex as a percentage of total expenditures to rise to 16%
by 2024 from the recent low of 11% and 12% in 2020 and 2021,
respectively, due to the pandemic and related recession.

"We expect the city to finance small fiscal deficits with a mix of
internal liquidity and issuances in the domestic debt market, which
has remained widely available for the city and the provinces as
investors aim to diversify away from the national government
holdings. In addition, Buenos Aires' stronger creditworthiness
stemming from honoring all debt obligation even amid the pandemic
and related recession--unlike most of the provinces--and debt
service mostly denominated in domestic-currency in the next two
years, prompts us to view the city's access to external liquidity
as satisfactory.

"As a result, we expect the city's liquidity to be more than enough
to service its debt for the next 12 months. However, weak
macroeconomic conditions could result in debt service coverage
volatility and as the city's debt service rises with the partial
maturity of its single international bond in 2025, coverage is
likely to fall.

"In line with relatively balanced fiscal results, and expectation
of the peso's depreciation pace significantly slower than the rise
in inflation, we expect the city's debt levels to continue to
decrease in terms of operating revenues. We forecast Buenos Aires'
debt levels to decline to 20% of operating revenues by 2024. We
expect interest burden to average 5% of operating revenues during
2022-2024. Our debt assessment continues to capture Buenos Aires'
debt profile exposure to foreign currency. At 70% of total debt,
the peso's steep depreciation would cause a significant increase of
debt in nominal terms and as a share of operating revenues."

A more favorable economic profile and lower infrastructure needs
underpin resilience

The city of Buenos Aires has the highest income level among
Argentina's LRGs, with an estimated GDP per capita of $34,052 for
2022, well above the estimated national average of $12,932. The
city's wealthier economy translated into stronger fiscal resilience
than those of domestic peers during the economic downturn because
of resilient consumption, and consequently, tax revenue. This
helped mitigate the effects of lower intergovernmental transfers.
In addition, high levels of capex in the past reduced the city's
infrastructure needs, enabling the administration to have
flexibility to withstand the economic downturn. Regardless of more
favorable socioeconomic conditions, the city's economic growth will
continue to be linked to Argentina's, which S&P expects to expand
2% during 2022-2024.

Unlike most of Argentina's LRGs, Buenos Aires' past efforts to
finance itself with domestic currency issuances and MLIs helped the
city avoid a distressed debt restructuring in 2020-2021. The city
mitigated the fiscal cost of the pandemic and lower transfers, and
S&P expects it to continue expenditures in a prudent manner to
prevent an unsustainable growth in costs.

S&P siad, "We assess the institutional framework for Argentina's
LRGs as very volatile and underfunded, reflecting our perception of
the sovereign's very weak institutional predictability and volatile
intergovernmental system that has been subject to various
modifications to fiscal regulations, and lack of consistency over
the years. This constrains the LRGs' financial planning and
consequently their credit quality. In our opinion, this weakness
currently prevents us from rating the city higher.

"Moreover, we continue to believe that the city's creditworthiness
is influenced by Argentina's foreign currency policies, which are
currently highly restrictive, resulting in a 'CCC+' T&C
assessment."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS AFFIRMED

  BUENOS AIRES (CITY OF)

   Issuer Credit Rating        CCC+/Stable/--

  BUENOS AIRES (CITY OF)

   Senior Unsecured            CCC+




===========
B R A Z I L
===========

BRAZIL: Sao Paulo Gets $164M IDB Loan for Digital Transformation
----------------------------------------------------------------
The State of Sao Paulo, Brazil, will advance its digital
transformation process to improve the quality and efficiency of
public services to citizens, with a $164 million loan approved by
the Inter-American Development Bank (IDB).

The funds will be used to expand digital inclusion through greater
access to and use of digital public services, and to improve the
efficiency and transparency of public management through digital
transformation.

Specifically, the financing will support modernization of the
Poupatempo Digital platform, where citizens can access various
public services; strengthen cybersecurity and the Sao Paulo State
Data Center, including developing a state data strategy; and
support improvements in the transparency and open data portal.

In addition, the program will finance actions to improve the
connectivity of the vulnerable population in areas of the state
with less access to the Internet, and will invest in accelerating
digitalization of the health sector.

Finally, the program will develop and implement a digital literacy
strategy for women, and digitization of state public services will
include universal access functionalities for people with
disabilities. It will also expand the offering of telehealth
services with a gender-differentiated approach.

This is the fifth individual operation under the $1 billion "Brazil
More Digital" conditional credit line approved by the IDB in April
2021 to finance investment projects in support of the country's
digital transformation.

The program is part of the IDB's Vision 2025 initiative to
accelerate economic recovery during the post-COVID-19 pandemic
period through digitalization and greater diversity and gender
inclusion.

The loan to the State of Sao Paulo has an amortization term of 24.5
years, a grace period of 6 years, an interest rate based on SOFR,
and a local government counterpart contribution of $41 million.

                       About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

As reported in the Troubled Company Reporter-Latin America on
July 18, 2022, Fitch Ratings has affirmed Brazil's Long-Term
Foreign Currency Issuer Default Rating at 'BB-' and revised the
Rating Outlook to Stable from Negative.

On June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long-
and short-term foreign and local currency sovereign credit
ratings on Brazil.

Moody's Investors Service also affirmed on April 15, 2022,
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.

DBRS Inc. confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low) on Aug 12, 2022. At the same time,
DBRS Morningstar confirmed the Federative Republic of Brazil's
Short-term Foreign and Local Currency Issuer Ratings.




=========
C H I L E
=========

LATAM AIRLINES: Revised Business Plan Sees Bullish Future
---------------------------------------------------------
CH-Aviation reports that LATAM Airlines Group is expected to save
US$100 million more than initially expected, reduce its debt by
36%, and hopes to exceed 2019 revenue levels by reaching US$11.5
billion in 2024.

This is according to adjustments made to its five-year 2021-2027
business plan in line with new global macroeconomic conditions, the
airline group announced in a statement, notes the report.

"Our updated business plan reflects how LATAM group is better
prepared to face future challenges, with a more competitive and
flexible cost structure, a more complete offering for customers,
and important progress towards more sustainable aviation,"
commented Group Chief Executive Officer Roberto Alvo, says
CH-Aviation.

As reported, on June 18, 2022, the US Bankruptcy Court in New York
confirmed the group's plan of reorganisation and financing to exit
Chapter 11, expected in the last quarter of 2022.

The new version of the plan updated LATAM cost savings estimate
from USD900 million to more than USD1 billion annually, resulting
from initiatives that have already been implemented, according to
CH-Aviation. These include improvements in its cost structure and
structural reform in fleet renegotiation, network strengthening,
and a reduction of its total debt by 36% compared to pre-pandemic
levels.

Regarding revenue, the group is expected to exceed 2019 levels by
2024, reaching US$11.5 billion, the report adds.

It expects a recovery in the domestic markets of its subsidiaries
to 2019 levels by the end of 2022, the report relates. In the case
of Colombia, such recovery was achieved in the first quarter of
2022 already, while Brazil and Ecuador are expected to achieve it
within the third quarter of 2022.

Recovery of international traffic -- which accounted for about 45%
of 2019 revenues -- is expected to be slower, reaching 2019 levels
by mid-2023, says CH-Aviation.

The report notes that for 2024, the group projects passenger
operations measured in available seat kilometres (ASK) similar to
2019.

                  About LATAM Airlines Group

LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.

Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.

LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020.  Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.

The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.

The Hon. James L. Garrity, Jr., is the case judge.

The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.

Prime Clerk LLC is the claims agent.

The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.

The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.

Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.



=============
J A M A I C A
=============

[*] MAILPAC: Records Less Profit in June Quarter
------------------------------------------------
RJR News reports that courier-company Mailpac Group recorded less
profit in its second quarter ended June.

Post-tax earnings amounted to $81.3 million versus $95 million for
the same period last year, according to RJR News.

The company also saw reduced earnings for the quarter, coming in at
$408.3 million, the report notes.

That was 4.2 per cent lower than the same period last year, when
the company made $426 million, the report relays.

Mailpac says it continues to face pressure from inflation and
increased travel, however, it is optimistic that its performance
will improve as it institutes innovative ways to target more
customers who shop online, the report adds.




=======
P E R U
=======

PETROLEOS DEL PERU: Fitch Cuts LT IDRs to BB+, Keeps Watch Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded Petroleos del Peru - Petroperu S.A.'s
Long-Term Foreign and Local Currency Issuer Default Ratings (IDR)
to 'BB+' from 'BBB-'. Fitch has also downgraded Petroperu's senior
unsecured notes to 'BB+' from 'BBB-'. The Rating Watch Negative
(RWN) has been maintained.

The downgrade to 'BB+' and revised Standalone Credit Profile (SCP)
to ccc- from ccc reflects a weakening in Petroperu's liquidity,
persistent high leverage, insufficient government support, and
uncertainty pertaining to its ability to maintain its credit lines.
Petroperu has publicly disclosed in its unaudited financials a cash
position of USD32 million, as of June 30, 2022, which Fitch deems
to be inadequate.

Further, the company disclosed that USD1.2 billion of its USD2.9
billion of uncommitted revolving credit lines are under review with
lenders; in June 2022, the government extended a USD750 million
intercompany loan, which has a grace period to repay principal and
interest through August 2024, to support the company. Fitch views
this support as necessary but falls short in providing the
liquidity buffer the company needs for working capital and debt
service.

The RWN has been maintained to reflect uncertainty regarding the
company's ability to provide audited financials for year-end 2021
by the end of September, and the uncertainty regarding its ability
to maintain its USD1.8 billion of revolving credit lines, which
Fitch's deems as crucial for the company.

KEY RATING DRIVERS

Government Related Entity: Petroperu's ratings are linked with the
sovereign's through Fitch's GRE criteria. The company is rated on a
top-down-minus-two basis due to a lowering of its GRE assessment
score from 35 to 27.5 as a result of the downward revision of the
financial implications of a default from 'strong' to 'moderate' and
support track record from 'strong' to 'moderate.' These factors
coupled with a more than four notch differential between the SCP
and that of the sovereign rating, resulted in a 'BB+' rating.

Status, Ownership and Control designation has remained as 'very
strong.' Petroperu is 100% owned by the Peruvian government,
through the Ministry of Energy and Mines (60%) and the Ministry of
Economy and Finance (40%). The downward revision of the support
track record to moderate reflects Fitch's view that recent
government support was inadequate and did not strengthen the
company's weak liquidity position and address it elevated leverage,
both of which are deemed unsustainable. The government extended an
intercompany loan with a grace period through August 2024, but this
does not constitute strong support. Fitch views an equity
injection, capitalization of its loan, and/or further government
guarantee of Petroperu's debt as favorable and will likely
strengthen the support and track record score.

High Leverage: Petroperu's gross debt/EBITDA is estimated to have
declined to around 14.0x during 2021 from 24x in 2020, primarily
due to a rebound in sales during 2021. Fitch estimates Petroperu
will maintain a structural debt close to USD5.0 billion during the
next two years. Gross leverage is projected to be close to 8.0x in
2022 before falling to around 5.3x during 2023 as the Talara
Refinery ramps up.

Operational Cash Flow Volatility: Petroperu's cash flow generation
is sensitive to changes in oil prices. Since Peru is a net importer
of crude, elevated oil prices result in a compression of its profit
margins. Operational interruptions to its transportation business,
including disruptions related to the actions of local communities,
further exacerbate cash flow volatility. Petroperu's cash flow
volatility experienced in 2021 has continued into 2022. The
completion of the Talara refinery will dramatically lower capex for
the company past 2022; it will also increase operational
efficiency, and predictable crack spreads should translate into
stronger EBITDA margins over the rating horizon.

Regulatory Risk: Petroperu is exposed to changes in the Peruvian
Technical Decree. In 2010 the prohibition of commercializing diesel
with more than 50ppm of sulphur in Lima and Callao was extended to
other regions. This restriction, combined with other factors,
affected Petroperu's costs, reducing gross profit margins from
around 15% to, or below, 9% after the implementation of the
regulation. It became necessary for the company to invest
approximately USD5 billion, primarily for PMRT's expansion into a
highly complex new refinery.

ESG - Financial Transparency: Petroperu has an ESG Relevance Score
of '5' for Financial Transparency, reflecting the governance issues
and weakness related to financial transparency as evidenced by the
delay in the financial audit of YE statements, and its strained
relationship with the auditing firm. ESG Relevance Scores of 5 are
highly relevant credit considerations and impact the rating on an
individual basis.

DERIVATION SUMMARY

Petroperu's rating linkage to the Peruvian sovereign rating is in
line with the linkage present for most national oil and gas
companies (NOCs) in the region, including Empresa Nacional de
Petroleo (ENAP; A-/Stable), YPF S.A. (CCC), Ecopetrol S.A.
(BB+/Stable) and Petroleo Brasileiro S.A. (Petrobras; BB-/Stable).

In Latin America most NOCs are of significant strategic importance
for energy supply to their countries, and a default could have
potentially negative social and financial implications at a
national level. Like its peers, Petroperu has legal ties to the
government, through its majority ownership and strong operational
control.

Petroperu's ratings also reflect the company's strong domestic
market position, with 35% of the country's refining output. The
ratings are constrained by its weak capital structure and exposure
to political interference risk.

KEY ASSUMPTIONS

-- Continuous implicit support, if needed, from the government
    given the company's strategic importance;

-- Fitch's Brent oil price at $105 per barrel (bbl) in 2022,
    $85/bbl in 2023, $65/bbl in 2024, and long-term prices at
    $53/bbl;

-- PMRT total cost of approximately USD5.3 billion (excluding
    financial expenses), considering an equity contribution from
    the Peruvian Government of USD325 million, and the remaining
    portion finance with debt;

-- Roll over of short-term working capital facilities;

-- PMRT to be completed by mid-2022, fully operational by the end

    of 2022, and generating refining crack spreads in the range of

    USD10 per barrel.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- A positive rating action of the Peruvian sovereign could lead
    to a positive rating action on Petroperu;

-- An upgrade can be considered if government does a capital
    injection, capitalizes its loans, and/or guarantees a greater
    portion of Petroperu's debt;

-- Fitch may consider a resolution of the RWN once the company
    provides 2021 year-end qualified audited financial statements
    and there is greater confidence pertaining to its ability to
    maintain lines of credit.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- A downgrade of Peru's sovereign rating;

-- A sustained deterioration of Petroperu's financial
    flexibility, combined with government inaction to support the
    company's liquidity, potentially resulting from continued
    negative FCF or a material reduction of cash on hand, credit
    facilities and restricted capital markets access.

LIQUIDITY AND DEBT STRUCTURE

Deteriorated Liquidity: As of June 2022, Petroperu reported USD32
million in cash on hand, compared with the USD240 million
registered during December 2021. The company has revolving credit
lines for up to USD2.9 billion, out of which USD1.2 billion is
currently under review by financial institutions, and short-term
financial debt totaling USD 965 million.

ISSUER PROFILE

Petroperu is a Peruvian state-owned petroleum company under private
law and dedicated to transportation, refining, distribution and
marketing of fuels and other petroleum-derived products.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of
'5' for Financial Transparency due to delay in providing audited
financial statements, which has a negative impact on the credit
profile, and is highly relevant to the rating, resulting in an
implicitly lower rating, which in combination with other factors
resulted in further decoupling from the sovereign rating and thus a
rating downgrade. .

Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of
'4' for Management Strategy due to its nature as a majority
government-owned entity and the inherent governance risk that arise
with a dominant state shareholder, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.

Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of
'4' for Group Structure due to its nature as a majority
government-owned entity and the inherent governance risk that arise
with a dominant state shareholder, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.

Petroleos del Peru - Petroperu S.A. has an ESG Relevance Score of
'4' for Governance Structure due to the ongoing issues with the
production of its audited financial statements, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

RATING ACTIONS

ENTITY / DEBT  

                            RATING           PRIOR  
                            ------           -----
Petroleos del Peru
- Petroperu S.A.

                   LT IDR     BB+  Downgrade  BBB-

                   LC LT IDR  BB+  Downgrade  BBB-

  senior unsecured LT         BB+  Downgrade  BBB-





=====================
P U E R T O   R I C O
=====================

SAN JORGE CHILDREN'S HOSPITAL: Files for Chapter 11 Bankruptcy
--------------------------------------------------------------
San Jorge Children's Hospital Inc. has filed for Chapter 11
bankruptcy in Puerto Rico.

According to Pop News 24/7, exactly 60 years after its founding,
Hospital San Jorge in Santuras filed a Chapter 11 petition, but
that doesn't mean they will stop working or their services will be
affected.

"The financial restructuring plan will strengthen our business and
allow the hospital to continue its important work," said Jose Luis
Rodriguez, vice president of operations and executive director, San
Jorge Children's and Women's Hospital.

According to Pop News, the lawyer, who has been working in the
institution for two years, admitted that the hospital is facing
significant financial challenges which were further affected by the
loss of income during the COVID-19 pandemic. The purpose of this
bankruptcy petition, he added in written statements, is to
significantly reduce debt and annual interest expense.

"We will continue the services. The job is guaranteed. It is a
financial strategy," said Catherine Barbosa, the hospital's
marketing director.

In a written statement, the hospital administration reiterated that
the facility would continue to function as usual and the staff
would not be affected.

The restructuring statement reportedly seeks to retain about 400
jobs and invest in raising additional capital to support health
care needs. The new financing and cash produced by the company's
existing operations will be used "to support the business and
reduce debt."

According to court filings, San Jorge Children's Hospital Inc.
estimates between 200 and 999 unsecured creditors.  The petition
states funds will be available to unsecured creditors.

A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 14, 2022, at 10:00 AM via Telephonic Conference Information
for AUST/Trial Attys.

Proof of claim are due by Jan. 12, 2023.

              About San Jorge Children's Hospital

San Jorge Children's Hospital Inc. owns and operates a hospital
facility in the Municipality of San Juan, Puerto Rico.  The
hospital opened its pediatric emergency room in 1991, and in 1993
it inaugurated the first bone marrow transplant unit in Puerto
Rico.  In 1995, the San Jorge Children's Foundation was created, a
non-profit organization that helps low-income children receive
services and treatment.

San Jorge Children's Hospital Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 22-02630) on
Sept. 1, 2022. In the petition filed by Edward P. Smith, as chief
operating officer, the Debtor listed assets and liabilities between
$10 million and $50 million.

The Debtor is represented by Wigberto Lugo Mender of Lugo Mender &
Co.



===========================
V I R G I N   I S L A N D S
===========================

PACIFIC RIM: Chapter 15 Case Summary
------------------------------------
Chapter 15 Debtor:        Pacific Rim Global Growth Limited
                          Jayla Place, Wickhams Cay 1
                          Road Town, Tortola VG1110
                          British Virgin Islands

Foreign Proceeding:       Eastern Caribbean Supreme Court,
                          High Court of the BVI,
                          Commercial Division

Chapter 15 Petition Date: August 31, 2022

Court:                    United States Bankruptcy Court
                          Southern District of Florida

Case No.:                 22-16812

Foreign Representatives:  Angela Barkhouse
                          Helen Janes
                          Carl Jackson
                          142 Seafarers Way
                          George Town, Grand Cayman KY1-9006
                          Cayman Islands

Foreign
Representatives'
Counsel:                  Gregory S Grossman, Esq.
                          Juan J. Mendoza, Esq.
                          Jennifer Mosquera, Esq.
                          SEQUOR LAW, P.A.
                          1111 Brickell Avenue, Suite 1250
                          Miami, FL 33131
                          Tel: (305) 372-8282
                          Email: ggrossman@sequorlaw.com
                                 jmendoza@sequorlaw.com
                                 jmosquera@sequorlaw.com

Estimated Assets:         Unknown

Estimated Liabilities:    Unknown

A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:

https://www.pacermonitor.com/view/YWFL4BI/Pacific_Rim_Global_Growth_Limited__flsbke-22-16812__0001.0.pdf?mcid=tGE4TAMA


SELUNE LTD: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtor:       Selune Ltd.
                         Palm Grove House
                         P.O. Box 438
                         Road Town, Tortola VG1110
                         British Virgin Islands

Chapter 15 Petition Date: August 31, 2022

Court:                    United States Bankruptcy Court
                          Southern District of Florida

Case No.:                 22-16810

Foreign Proceeding:       Eastern Caribbean Supreme Court,
                          High Court of the BVI,
                          Commercial Division

Foreign Representatives:  Angela Barkhouse
                          Helen Janes
                          Carl Jackson
                          142 Seafarers Way
                          George Town, Grand Cayman KY1-9006
                          Cayman Islands

Foreign Representatives'
Counsel:                  Gregory S. Grossman, Esq.
                          Juan J. Mendoza, Esq.
                          Jennifer Mosquera, Esq.
                          SEQUOR LAW, P.A.
                          1111 Brickell Avenue, Suite 1250
                          Miami, FL 33131
                          Tel: (305) 372-8282
                          Email: ggrossman@sequorlaw.com
                                 jmendoza@sequorlaw.com
                                     jmosquera@sequorlaw.com

Estimated Assets:         Unknown

Estimated Liabilities:    Unknown

A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:

https://www.pacermonitor.com/view/YLZSQQQ/Selune_Ltd__flsbke-22-16810__0001.0.pdf?mcid=tGE4TAMA



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2022.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *